Shares of digital 3-D projection technologist RealD
Sales fell 15% year over year to $49 million, but your average analyst expected just $43 million. The strong revenues filtered all the way down to a bottom-line boost, where RealD saw a GAAP net profit of $0.05 per share. Analysts expected losses of about the same size.
RealD projectors have now been installed in 19,700 screens worldwide, a 74% jump in 12 months. Domestically, you'll find the technology on about 11,500 screens. At last count, American cinemas had installed about 22,000 digital projection systems, covering 58% of all available screens.
Leading theater chains AMC, Regal Entertainment
On a global level, we have over 60,000 digital screens. That leaves a lot of room for RealD expansion, first as celluloid systems convert into digital, and then as the battle for 3-D share rages on.
Note that RealD doesn't just collect license fees on projector installations, but also grabs a small royalty out of the 3-D box office they generate. 2012 has a downright mouthwatering slate of films coming to the medium, including re-releases of Titanic and the Star Wars saga, Peter Jackson's The Hobbit, the rebooted Spider-Man series, and superhero tentpole The Avengers. Not satisfied with just the Marvel action, Walt Disney
If that pipeline doesn't set RealD and IMAX up for amazing profits, I don't know what will.
RealD set itself up for a big bounce here, but the Fool has found one stock with its spring coiled even tighter. We call it The Motley Fool's Top Stock for 2012 in a special report, available for free but only for a limited time. Get your copy right now.